gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5c4365b3c23e57c0
Response Measures
None
Description
Bank was taken by state after a run and later reorganized as Mercantile Bank & Trust Co.; reopening approved in March and reported reopening in June.
Events (3)
1.December 22, 1930Run
Cause
Rumor Or Misinformation
Cause Details
A whispering/rumor campaign and suspected short-selling/communist-inspired rumors precipitated heavy withdrawals.
Measures
None reported by bank; state later took possession after withdrawals
Newspaper Excerpt
The closing of the bank followed a run on the institution which developed last night and continued this morning.
Source
newspapers
2.December 23, 1930Suspension
Cause
Government Action
Cause Details
State Superintendent of Banks took possession of the bank following the run, effectively closing/suspending it.
Newspaper Excerpt
State Superintendent of Banks Joseph Broderick today took possession of Chelsea Bank and Trust Company... The closing of the bank followed a run on the institution.
Source
newspapers
3.March 13, 1931Reopening
Newspaper Excerpt
A plan for organization of a new trust company to be known as the Mercantile Bank & Trust Co., to take over the assets of the closed Chelsea Bank & Trust Co., was approved today by Supreme Court... depositors would be paid in full.
Source
newspapers
Newspaper Articles (19)
1.December 23, 1930Springfield Evening UnionSpringfield, MA
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Article Text
5 o'Clock News Flashes
State Takes Possession of Chelsea Bank NEW YORK, Dec. The state of banks, Joseph Broderick, today took possession of Chelsea Bank and Trust Company, a small institution largely patronized by actors and others in the theatrical business. It was capitalized at $2,500,000 has deposits of approximately $18,000,000, and total resources of $23,000,000. The closing of the bank followed a run on the institution which developed last night and continued this morning.
Broker Gets 14 Years for Embezzlement Plot WASHINGTON, Dec. G. Bryan Pitts, former chairman of the board of the F. H. Smith Company of Washington, today was sentenced to 14 years in prison for conspiracy to embezzle millions of dollars from the company. Elbert Anadale and John H. Edwards, Jr., also officers of the company, who were tried with Pitts, were given sentences of nine and four years, respectively.
Christmas Mail Rush at Peak Today WASHINGTON, Dec. 23-(AP) The gigantic Santa Claus sled of the Christmas mail was estimated to have hit peak today, and now is poised for its sharp toboggan to normalcy. If its aggregate equals last year's, as is expected by the Postoffice Department, the Christmas mails will have carried 1,670,000,000 letters, 20,000,000 package, and 17,000,000 postcards.
2.December 23, 1930The TimesTrenton, NJ
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Article Text
CHELSEA BANK HAS BEEN TAKEN OVER
NEW YORK Dec. State Superintendent of Banks, Joseph Brodertoday took possession of the Chelsea Bank and Trust Company small institution largely patronized by actors and in the theatrical busiwas capitalized at has approximat $18,000.000 and total resources of $23 The closing of the bank followed run the institution which developed last night and continued this The Chelsea Bank and Trust Comwas in 1903 and has six offices. It a and State depository 16 not member of either the Federal Reserve or the New York Clearing House the membership of which includes virtually all of the largest financial institutions in New York The banks owns the Chelsea Exchange Safe Deposit Company and 1928 organized the Chelsea Exchange Corporation to deal in securities.
3.December 23, 1930The Fresno BeeFresno, CA
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Article Text
State Takes Over Chelsea Bank In New York
State Superintendent of Banks Broderick announced to. day he had taken the Chelsea Bank and Trust Company The institution according to the latest figures, had gross of $16,323,000 on December 20th, The bank was closely identified with the motion picture industry in New York and two directors are active figures in the film world.
ANOTHER MIAMI CLOSES MIAMI BEACH Dec. 23. The City Bank of Miami Beach was closed to-day to protect depositors, officials announced, after run on the bank yesterday. The city bank had capital stock of $100,000 and of approximately $600,000. The City National Bank of Miami was closed yesterday.
CLOSE IN HARTFORD HARTFORD Dec. 23 Hartford banks, the Riverside Trust Company and Pallotti Andretta and Company, were suspended to-day by Bank Commissioner Lester E. Shippee, following runs both institutions. Pallotti Andretta and control the Riverside Trust ComThe state manual for 1930 gave the capital of the Riverside Trust Company as $400,000, surplus $600,000, undivided profits $24,229, savings deposits $643,805 and commercial deposits $3,185,455.10.
B7SSEMER (Ala.). Dec. 23 The City National Bank the Bessemer Trust and Savings Bank failed to open to-day.
RICHMOND (Va.), Dec 23 The state division of insurance and banking to-day the People's Bank of Gretna, Va., had
4.December 23, 1930Sun-JournalLewiston, ME
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Article Text
SMALL NEW YORK BANK IS CLOSED NEW YORK, Dec. 23-(P)-The State Superintendent of Banks, JoBroderick. of Trust patronized by actors and theatrical business. capital at has deposits and total resources of The closing bank followed which denight and continued this Chelsea Bank and Trust Co. was founded 1903 and fices. a National and State depository.
5.December 24, 1930The Fresno BeeFresno, CA
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Article Text
State Takes Over Chelsea Bank In New York
NEW YORK Dec 24 --(U.P) State Superintendent of Banks British Refuse Charge Broderick announced he had taken in over the Chelsea Bank and Trust the region and Diedrichs told me Company he wanted to get the Romanoff The institution, according to the remains into the of the latest figures, had gross Grand Duke Nichols as quickly as of $16,323,000 on December 20th. possible He had asked British representatives to take charge of The bank was closely identified this but they were with the motion picture industry when they asked authority in New York and two are their government active figures in the film world was then, General Janin wrote Diedrichs asked him ANOTHER MIAMI CLOSES take charge of the relies and he MIAMI BEACH (Fla.), Dec. 24 The City Bank of Miami accepted the of his own friendship for
BAY CITRUS (By Press) SAN
6.December 25, 1930Evening StarWashington, DC
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Article Text
TWO CHELSEA BANK INQUIRIES STARTED Roosevelt Asked to Investigate State Office's Relation to Closings. By the Associated Press. NEW YORK, December 25.-Two inquiries are under way to find the source of rumors blamed for the closing of the Chelsea Bank & Trust Co. Tuesday. Gov. Roosevelt was petitioned by a group of small depositors in the Bank of United States to invoke the State Moreland act to investigate the relation of the State Banking Department to the closing of the Bank of United States and of the Chelsea Bank. A letter from counsel for the group of East Side depositors called attention to the manner in which the Bank of United States took over, prior to April, 1929, the affairs of a number of other banks and questioned whether this could have been done under proper supervision by the banking department. While plain clothes men sought to trace reports of rumor mongering, Assistant Attorney General Washburn issued subpoenas for the records of a dozen brokerage houses dealing in bank stocks. Washburn said he would question brokers about their handling of Chelsea Bank stock in an effort to learn whether false rumors were circulated by short sellers of the stock in search of profit. Supt. James Broderick of the bank department issued a statement saying that so far as he knew there was nothing wrong with the condition of the Chelsea Bank. He took possession of the bank's assets, he said, after a run started by rumers caused increasing withdrawals from the bank.
7.December 26, 1930The TimesTrenton, NJ
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Article Text
COMMUNISTS BLAMED FOR RUN ON BANK
YORK Dec. were accused by the State Banking Department today of starting ing" campaigns to undermine public confidence New York banks. Officials of the State Banking partment claimed to have traced Communist sources run of nearly 1,000 bank last Saturday. Prompt and energetic action by the banking department checked withdrawals Officials expressed the belief that money may have financed the opera. tions stocks of the Chelsea Bank and Trust Company prior to the whispering campaign which precipitated heavy and caused the bank to be of brokerage houses were examined by Watson Washassistant Attorney General in charge of the State Securities Bureau. an effort to determine for whom they sold Chelsea and other bank stocks
8.December 26, 1930Globe-GazetteMason City, IA
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Article Text
Communists, Brokers Accused of Starting Run on Chelsea Bank
NEW YORK, Dec. 26. (/P)-Communists and short selling brokers of bank stock were equally suspected today in official attempts to trace to inspired sources the run which has resulted in the closing of the Chelsea Bank and Trust company early this week. Against neither group, however, were those in authority prepared to make supported accusations, altho it was intimated the state banking department had information tangible enough to warrant the attention of District Attorney Crain.
9.December 26, 1930Elmira Star-GazetteElmira, NY
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Article Text
Suspect Reds Plotting Runs Banks
York, Dec. ComNew and brokers munists bank stock were equally sustoday in official attempts trace to inspired sources the resulted the closing Chelsea Bank and Trust Company Tuesday. neither, however, were Against hose in authority prepared supported accusations, though intimated that the State Banking Department had information tangible enough to warattention of District Atrant torney Crain. The closing of the Chelsea Bank and Trust small institution largely by stage blamed flatly by people, Joseph Broderick, state banking upon run which gained in proportions until had be closed to safethe doors guard the institution's assets.
10.December 26, 1930Globe-GazetteMason City, IA
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Article Text
Communists, Brokers Accused of Starting Run on Chelsea Bank
NEW YORK, Dec. 26. (/P)-Communists and short selling brokers of bank stock were equally suspected today in official attempts to trace to inspired sources the run which has resulted in the closing of the Chelsea Bank and Trust company early this week. Against neither group, however, were those in authority prepared to make supported accusations, altho it was intimated the state banking department had information tangible enough to warrant the attention of District Attorney Crain.
Investigate Run On Chelsea Bank And Trust Co.
NEW YORK, Dec. 26. (P)-Communists and short-selling brokers of bank stock equally tosuspected day in official attempts to to trace inspired the run which has sulted in the closing of Chelsea bank and Trust Company Tuesday Against neither, were those authority prepared to supported accusations, although It intimated that state banking department had information tangible enough warrant the attention of District torney Crain The closing of the Chelsea bank and Trust Company. small institution patronized largely stage people, was blamed by Joseph Broderstate banking superintendent, upon which gained in propor. tions until were closed to safeguard the
12.December 26, 1930The ItemSumter, SC
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Article Text
Communists And Stock Gamblers Wrecked Bank
New York, Dec. munists and brokers bank stock were equally pected today official attempts trace inspired sources the which resulted in the closing of the Chelsea Bank and Trust Company The of the Chelsea Bank and Company, small stitution patronized largely by stage was blamed flatly by Joseph Broderick, state upon which gained in until the doors be closed guard the Assistant Attorney General Washburn that operators Chelsea bank stock in its and AssistAttorney Pilatsky has been assigned to down that has been under way to start bank runs.
13.December 27, 1930The Daily WorkerChicago, IL
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Article Text
Boro Park Depositors Back Fight of Committee
NEW steps are under way to mobilize the small depositors numbering around whose money tied up in the crash the Chelsea Bank and Trust Co. call has been issued to all positors of both the Chelsea Bank and Trust Co. and depositors in the Bank of United States in Harlem to come to mass meeting to be held m. at Luke's Hall, 130th second floor. Plans be drawn up to organize to
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14.January 16, 1931Brooklyn EagleBrooklyn, NY
Article Text
Lack of Aid by Other Banks
Efforts of Officers to Obtain Accounts of Bank of United States Depositors Brought DiffiTheories Scouted
The Eagle has retained Charles Recht, an attorney of the New York Bar, to act as its counsel and legal advisor in an investigation of banking conditions in New York City. Mr. Recht will give his services free and will also advise depositors in any failed bank. Inquiries should be addressed to The Brooklyn Eagle and not to Mr. Recht.
What caused the run and the closing of the Chelsea Bank and Trust Company, which an outside financial group is negotiating to take over and reopen under another name after supplying new capital? for Banking Superintendent Broderick in midafternoon on Dec. to take over this "Great White Way" institution on whose ledgers appear such names MorGest, Roxy's, Texas Harry Richman latter place frequented dered gambler, Arnold Rothstein? Overshadowed by recordbreaking smash of the Bank the United States, there been little official unofficial taken answer although the funds involved the Chelsea closing are amount volved City Trust collapse. The Chelsea closing involved surplus and deposits the City Trust book without taking account the looting, did not reach $10,000,000.
Chelsea Lacked Support Investigation by the Eagle indithat the for the run and closing the Chelsea the part the bank's officers obtain counts depositors the closed Bank the United States and the failure other banking institutions to give full support when the Chelsea got into acute difficulties. Charles special counsel Eagle in inquiry into banking analyzed the Chelsea run closing 'Reports published the day after
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15.March 13, 1931The Brooklyn Daily TimesBrooklyn, NY
Article Text
CHELSEA BANK'S DEPOSITORS GET MONEY IN FULL
Reorganization as Mercantile Bank and Trust Co. An nounced by Broderick
H. M. STILLMAN AT HELM
William A. Lobb to Be Vice President Opening Date
Still Undetermined. the Depositors for the will
Assured Against in published the new for old. assuring loss through the of Institution by the ment
Names of directors made in to vice president Jules man Kodak Louis Golde George Kern real estate operator A. Hardy of Hardy Hardy counsel for the reorganiza tion committee of the bank Robert E Connolly of the Illinois Central Railroad John T Madden president Alexander Hamilton & Ernest Safter
New Shares at $12 Each
The shares of issued by the bank will have par value of kholders of the Chelsea Bank share of the stock for each two shares they hold Mr. Broderick revealed in the tition that the Chelsea Bank now has on deposit in artous institutions has been collected by the Banking ment outstanding loans and by sale of securities The Banking Department has also wiped off 184 in debts to outside cred. Itors other than depositors Mr. Broderick made the following statement few minutes before his petition for the reorganization had been signed by Justice Townley "Superintendent Broderick mitted today to Alfred H. Townley Justice of the Supreme Court holdIng Special Term. Part 11. New York County petition for ap. proval of plan for organization of trust company to be known Mercantile Bank and Trust Co. to take over the assets of Chelsea Bank and Trust Co., and assume payment in full of the principal Page
16.March 13, 1931The Brooklyn Daily TimesBrooklyn, NY
Article Text
HELSEA BANK'S DEPOSITORS GET MONEY IN FULL eorganization as Mercantile
Bank and Trust Co. Announced by Broderick.
M. STILLMAN AT HELM illiam A. Lobb to Be Vice
Date
Still Undetermined.
Payment in full to depositors creditors of the Chelsea Bank Trust by complete under the name of the MerBank and Trust Co. today by Joseph Brodsuperintendent of the State Date of Department of the institution was not Mr. Broderick disclosed that the tition for reorganization had been proved and signed today by SuCourt Justice Townley in nhattan and returned to him. bank will be headed by Stillman president affiliated with the Chase Na. The president William meeting of the stockholders of Chelsea Bank be held early Banking Superintendent oderick revented today. to vote approval of the reorganiza. terms of the petition proved today by plan does effect unless the of Chelsea Bank formally approve special meeting. Depositors of the old bank will no interest on their money the period from Dec. 23. when bank closed. Only preferred positors must by law be paid while bank suspended. receive interest
Assured Against Loss the reorganization plan. published far. stockholders in Chelsea new stock old. assuring them against any through the taking of the Itution by the Banking Depart- of directors made public addition the president and president were: E. Brulatour. of the East. Kodak Co.: Louis Golde, of Sons. George real estate operator: Toney Hardy. attorney. of Hardy counsel for reorganizacommittee of the bank: Robert Connolly of the Illinois Railroad: John Madden. sident Alexander Hamilton Ernest Nye. of Freeman bankers: Ernest Satter. banker.
New Shares at Each shares stock issued bank will have par $12. of the Bank receive share new stock for each they hold Broderick revealed the that the Chelsea Bank now deposit various instituwhich been by the Banking Departin outstanding loans and by of The Banking also wiped off in debts to outside credother than Broderick made the ment minutes before his for the reorganization had signed by Justice Townley Broderic subtoday Alfred H. Townley, of the Supreme Court. holdSpecial Term. Part 11. New plan for organization of trust company to be known Mercantile Bank and Trust Co., over the assets of Chelsea and Trust Co., and assume in full of the principal
(Continued Following
DETROIT BANKS CLOSED.
Detroit, March 13 — (AP) — Four suburban banks failed to open for business today. They are the American State Bank of Ferndale, the American State Bank of Wyandotte, the State Savings Bank of Melvindale and the State Savings Bank of Lincoln Park. The Peoples Wayne County Bank announced that it is taking over the assets and assuming responsibility for deposits in the American State Bank of Detroit. The announcement said that "business will be conducted as usual at all branches of the American State Bank and at the main office."
New York, March 13 — (AP) — A plan for organization of a new trust company to be known as the Mercantile Bank & Trust Co., to take over the assets of the closed Chelsea Bank & Trust Co., was approved today by Supreme Court. The plan was submitted by Joseph A. Broderick, State Banking Superintendent. Under the plan Chelsea depositors would be paid in full, Broderick said.
18.March 14, 1931The Washington HeraldWashington, DC
Article Text
Chelsea Bank Found Solvent; NEW YORK, March proval of plan to reopen the Chelsea Bank and Trust Company given today by preme Court Justice Townley. positors to be paid 100 cents the dollar. The approval thus vindicates the conviction of directors that the institution was solvent when malicious whispering campaign was started that led the bank's closing December 23, last.
19.June 10, 1931The Bangor Daily NewsBangor, ME
Article Text
Re-opening of Suspended Banks number of the banks in the South which were forced to suspend have recently re-opened for business. In New York City, the Chelsea Bank and Trust Company, which closed its doors last December 23, re-opeend on June under the name of the Mercantile Bank and Trust Company. There were 1,345 suspensions of banks in the United States during 1930, more than in any previous year. Deposit liabilities of the suspended banks amounted to whereas the highest previous figure had been in 1926. The large number of bank suspensions in 1930 was due to some extent to the fact that number of banking chains were compelled to close their doors. Most of the susbut three had total of banks were small ones, pending in deposits, thus materially increasing the figure for the liabilities of all suspending banks. When bank is forced to suspend, proportion of its available to depositors by loans deposits is usually made from other banks on certificates of deposit, or by releases of some of its funds by the receiver. Additional funds are naturally available to the depositors when suspended bank In 1930, 147 suspended banks rere-opens its doors. In other words, the opened, with deposits of $62,000,000. number of re-opened banks in 1930 was 11 per cent of the number of suspended banks. The deposits of the re-opened banks were seven per cent of the deposits of suspended banks in 1930. For the first four months of 1931, the number of suspended banks was 432, compared with in the first four months of 1930. Their deposits were as against deposits of $119,000,000 in suspended banks in the first four months of 1930. However, in the first four months of 1931, there were 161 re-openings of suspended banks. This was 37 per cent of the number of banks suspending in that period. The deposits of the re-opening banks amounted to 35 per cent of the deposits of banks suspending in that period. It will be noticed that these percentages for the re-opening banks in the first four months of 1931 are considerably higher than the similar percentages for the whole year 1930. Of the banks which suspended in 1930, 45 per cent had capital stock of less than $25,000, and an additional 22 per cent had capital stock of $25,000. Only 17 per cent had capital stock of $100,000 or over. per cent of these banks in 1930 were in towns of less than suspending 1,000 population and only 13 per cent were in cities of more than 10,000 population. The big banks, almost without exception, have stood the test of hard times.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
